Are fees a city or other Kansas political subdivision charges to play sports or use recreation facilities subject to sales tax, and what about spectator admissions?

Plain-English summary

The Department announced a new exemption: effective May 1, 1978, all fees and charges made by Kansas political subdivisions for participation in sports, games, and other recreational activities are exempt from state and local sales taxes.

The exemption turns on participation versus spectating:

• Exempt: fees a municipal swimming pool or golf course charges a person who is actually swimming or playing golf — i.e., taking part in the activity.
• Taxable: an admission fee charged to a spectator — for example, someone watching a swimming meet — because there is no participation involved.

What this means for you

If your city or county recreation department charged people to play or take part — greens fees, pool entry for swimmers, league or activity fees — those participation charges were exempt from sales tax starting in May 1978. But if you charged admission just to watch an event, that spectator admission was still taxable. The line is whether the person paying is doing the activity or watching it.

Common questions

Q: What became exempt on May 1, 1978?
A: Fees and charges made by Kansas political subdivisions for participation in sports, games, and other recreational activities — exempt from both state and local sales tax.

Q: Are spectator admissions exempt too?
A: No. The exemption is limited to participation; a spectator admission fee (such as admission to a swimming meet) remains subject to sales tax.

Q: Can you give an example of each?
A: A municipal pool or golf course fee charged to someone swimming or playing is exempt; an admission fee charged to a spectator is taxable.

Citations and references

• The notice announces the exemption without citing a specific statute section; it applies to fees and charges by Kansas political subdivisions for recreational participation.

Subject

Sales Tax Exemption for Political-Subdivision Recreation Participation Fees

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 78-0501

Original ruling text

Notice
Notice Number: Sales Tax Exemptions For Fees And Chargers Made By Political
Subdivisions-
Tax Type: Kansas Retailers' Sales Tax
Brief Description: Taxation of Admission Charges/Exemption Of Participation Charges-
Keywords:
Effective Date: 05/01/1978

Body:

 NOTICE
             SALES TAX EXEMPTION FOR FEES AND CHARGES MADE BY POLITICAL SUBDIVISIONS FOR
             PARTICIPATION IN SPORTS, GAMES AND OTHER RECREATIONAL ACTIVITIES


 Effective May 1, 1978, all fees and charges made by political subdivisions of the State of Kansas for participation in sports,
 game and other recreational activities are exempt from state and local sales taxes.

 This exemption applies only to fees and charges made by political subdivisions for participation in sports, games, and other
 recreational activities and does not extend to spectator admissions where there is no participation involved. As an example,
 fees charged by a municipal swimming pool or golf course to a person actually swimming or playing golf would be exempt
 from sales tax. However, an admission fee charged to a person who is a spectator at a swimming meet would be subject to
 sales tax.

 Any inquiries regarding this exemption should be directed to the Kansas Department of Revenue, Sales & Excise Tax Bureau,
 P.O. Box 692, Topeka, Kansas 66601, telephone (913) 296-2461.



 ISSUED JUNE, 1978

Date Composed: 10/06/1997 Date Modified: 10/10/2001

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